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Media sector Soars up while the least troubled SGA falls -.21 to $8.57

August 07, 2009 – Comments (0) | RELATED TICKERS: CBS , MEG , SGA

Saga Communications Inc. posts $2.6 million in 2Q net incomehttp://www.crainsdetroit.com/article/20090806/FREE/908069986#By Bill SheaCBS up +2.21, GCI up +0.74, MEG up +1.96, MNI up +0.22, NYT up +0.17 , SGA down -0.21 


Grosse Pointe Farms-based Saga Communications Inc. — considered by some radio industry analysts to be the least troubled in a troubled industry — saw both revenue and net income fall in the second quarter.

However, the company posted income rather than a loss for the second quarter, a positive change after a net loss of $362,000, or nine cents a share, on revenue of $26 million during the first quarter.

The broadcaster has blamed advertising declines for its revenue troubles, an industry-wide issue.

Saga today reported net income of $2.6 million or 63 cents a share on revenue of $31.6 million during the quarter ending June 30, compared with net income of $3.4 million or 70 cents on revenue of $37.3 million during the same quarter last year.

For the first six months of the year, Saga (NYSE Amex-SGA) reported net income of $2.3 million or 55 cents on revenue of $57.7 million, compared with net income of $4.3 million or 88 cents on revenue of $68.8 million during the same period last year.

Saga said it was able to forestall a deeper decline in net operating revenue because it shaved $4 million off its station operating expenses in the second quarter, to $23.3 million.

Saga owns 61 FM and 30 AM radio stations, but none in the Detroit market.

Radio nationally was forecast to see a 13 percent revenue decline this year, with Saga among the least affected (with single-digit declines), according to Marci Ryvicker, who monitors Saga as a broadcast industry analyst for New York City-based Wachovia Capital Markets L.L.C.